An analyst from Keefe Bruyette, Ryan Tomasello, has increased the price target for CoStar Group (CSGP, Financial) to $100 from the previous $95, maintaining an Outperform rating for the stock.
Tomasello suggests that CoStar's second quarter is anticipated to show a notable improvement in net new bookings, reflecting a positive shift in the company's performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for CoStar Group Inc (CSGP, Financial) is $90.11 with a high estimate of $105.00 and a low estimate of $70.00. The average target implies an upside of 5.83% from the current price of $85.14. More detailed estimate data can be found on the CoStar Group Inc (CSGP) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, CoStar Group Inc's (CSGP, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CoStar Group Inc (CSGP, Financial) in one year is $110.45, suggesting a upside of 29.73% from the current price of $85.14. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CoStar Group Inc (CSGP) Summary page.
CSGP Key Business Developments
Release Date: April 29, 2025
- Revenue: $732 million in Q1 2025, a 12% increase year over year.
- Adjusted EBITDA: $66 million, a 429% increase over Q1 2024.
- Profit Margin: 43% for commercial real estate and information marketplace businesses.
- Net New Bookings: $56 million in Q1 2025, up 6% sequentially from Q4 2024.
- International Business ARR: Over $5 million in Q1 2025, representing 56% year over year growth.
- CoStar Revenue: $265 million in Q1 2025, up 6% year over year.
- LoopNet Net New Bookings: 200% year over year increase.
- BizBuySell Revenue: $8.7 million in Q1 2025, a 10% increase year over year.
- Apartments.com Revenue: $282 million, an 11% increase over Q1 2024.
- Homes.com Unaided Awareness: Increased 9 times to 36% in 14 months.
- Net Loss: $15 million due to onetime costs from Matterport acquisition.
- Cash and Investment Income: $38.5 million net investment income on $3.8 billion in cash.
- Contract Renewal Rate: 89% in Q1 2025, 94% for subscribers of five years or longer.
- Share Repurchase: 240,000 shares for $18.5 million in Q1 2025.
- Full Year 2025 Revenue Guidance: $3.115 billion to $3.155 billion, 14% to 15% growth.
- Full Year 2025 Adjusted EBITDA Guidance: $355 million to $385 million, approximately 12% margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CoStar Group Inc (CSGP, Financial) reported Q1 2025 revenue of $732 million, marking a 12% increase year over year and exceeding consensus expectations.
- The company achieved a 43% profit margin in its commercial real estate and information marketplace businesses, showcasing strong operational efficiency.
- CoStar's international businesses achieved three consecutive quarters of all-time net new bookings, with a 56% year over year growth in Q1 2025.
- Apartments.com reported a strong quarter with revenue of $282 million, an 11% increase over Q1 2024, and added 4,300 new communities, the most in a single quarter in almost 10 years.
- Homes.com has rapidly increased its unaided brand awareness 9 times to 36% in just 14 months, becoming the second most visited US residential portal.
Negative Points
- The commercial real estate environment remains challenging, with high vacancy rates and low real asking rents impacting market conditions.
- CoStar Group Inc (CSGP) posted a $15 million net loss for the first quarter, primarily due to onetime costs from the Matterport acquisition.
- The company anticipates slight headwinds from government contract cancellations expected throughout 2025.
- Matterport contributed an adjusted EBITDA loss of $2.7 million for the first quarter stub period.
- Homes.com experienced early cancellations and negative Net Promoter Scores initially, although these metrics have improved over time.
